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The Saving Function
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Problem 10
The Saving Function
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15. Income and Consumption / The Saving Function / Problem 7
Problem 7
How does the marginal propensity to save (MPS) relate to the slope of the savings function?
A
The MPS is the slope of the savings function.
B
The MPS is the slope of the consumption function.
C
The MPS is unrelated to the slope of the savings function.
D
The MPS is the inverse of the slope of the savings function.
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